Budget 2019: Tax relief, greater collaboration with banks - this is what Fintech industry eyes

Budget 2019 expectations: The Budget 2019 is the next big thing for not only Indian citizens but also for Prime Minister Narendra Modi led government who is preparing for a battleground to compete with the opposition parties in the upcoming Lok Sabha Elections. This would be an interim Budget which will be presented by Finance Minister Arun Jaitley on February 01. The ruling party once elected for India, will introduce an overall Budget sometime later in the year. 

While many sectors are eyeing some good news for themselves, which is why, even fintech industries look forward to some major reforms in their segment especially in regards to tax relief. 

Ranjit Punja is the CEO and Co-Founder CreditMantri said, "It is undeniable that digitalisation has made a powerful impact on financial transactions. It is expected that the 
Government would continue to push digitization of financial systems whilst the consumer will, more and more, be encouraged to shift to digital platforms for financial transactions."

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Punja further added, "Good and Services Tax (GST) is a landmark reform that has delivered several major economic benefits." 

Thereby, Punja says, "It is expected that a certain tax relief would be given to companies who accept digital payments. This will drive significant investments in the fintech sector, providing innovative solutions to merchants and consumers.

Furthermore, Punja explains that, there is also growing insecurity among consumers on how much data and who is capturing it. So definitely, the regulation and mechanisms to ensure data security is expected. 

However, in Punja's view, "it should be such that ease, speed and convenience now made available is not compromised. Greater collaboration between Banks and Fintech companies can be the best path to long-term growth. This will help understand each other’s strengths and weaknesses to improve the customer experience and reduce operational costs."

The Indian Government has taken tremendous steps to improve the ease of doing business with new technologies and innovation. This year’s budget will be crucial for both fintech companies and start-up businesses as to how the budget will sustain the wave of digitization and other major initiatives.